Case Detail

Case Summary

Hollywood Rules

Case Number: 5-111-012, Year Published: 2012

HBS Number: KEL700

Request PreviewBuy

Authors: Karl Schmedders; Charlotte Snyder; Ute Schaedel

Key Concepts

Decision Making, Financial Analysis, Financial Planning, Market Research, Marketing, Statistical Methods

Abstract

Wall Street hedge fund manager Kim Meyer is considering investing in an SFA (slate financing arrangement) in Hollywood. Dave Griffith, a Hollywood producer, is pitching for the investment and has conducted a broad analysis of recent movie data to determine the important drivers of a movie’s success. In order to convince Meyer to invest in an SFA, Griffith must anticipate possible questions to maximize his persuasiveness.

Learning Objectives

Students will analyze the factors driving a movie’s revenue using various statistical methods, including calculating point estimates, computing confidence intervals, conducting hypothesis tests, and developing regression models (in which they must both choose the relevant set of independent variables as well as determine an appropriate functional form for the regression equation). The case also requires the interpretation of the quantitative findings in the context of the application.

Number of Pages: 9

Extended Case Information

Teaching Areas: Finance, Statistical Methods, Marketing

Teaching Note Available: Yes

Geographic: Hollywood, California, United States

Industry: Film

Organization Name: Fictional

Organization Size: Medium

Decision Maker Position: Movie Producer

Year of Case: 2008